Introduced in 2023, this credit helps with the cost of renovating a home, for the purpose of adding a secondary unit for an extended family member to live in. Specifically, the person who lives in this new dwelling must be a family member and must be either a senior, or a related adult who is eligible for the disability tax credit.

The credit is fifteen per cent of the cost of the renovation, up to $50,000. The maximum credit is $7,500.

The secondary unit must self-contained, have a private entrance, kitchen, and bathroom. The unit must also be occupied (or reasonably expected to be occupied) within twelve months after the end of the renovation.

Expenses that qualify for the credit, include items such as the purchase of goods or services, permits, and rental equipment used in the renovation.

Expenses such as regular maintenance, home-entertainment devices, appliances, and housekeeping (indoor or outdoor) services do not qualify.

The credit is for qualifying expenditures made within 2023, and the claim is made on the 2023 personal income tax return.

For more information regarding this tax credit, please click here.